Crypto

CoinBase Figures Worst Than Expected – What You Need to know

Coinbase figures have come in worse than expected. And it shows a company in trouble. The profits thought the last quarter or the last for the last quarter was 1.1 billion. If you compare that to its peak, Coinbase made 1.6 billion in a quarter in its peak what’s happened.

Well, the public are using Coinbase much less than they were. Of course, at the peak, the cryptocurrency prices were higher. So therefore they were able to make a larger margin, not only the public using it less, but also institutions have derisk.

And of course, if you look at the stock market, you’ll see that institutions of de-risk in the tech sector in particular, but they de-risk in the stock market as well. Of course, Coinbase, however has got costs, but ly its costs have gone up.

Normally when you’ve got a company, if it’s doing less business, it’s able to reduce its costs.

In fact, you had the opposite with Coinbase and that’s what’s concerning it’s operational costs, nearly doubled. It’s invested more money in tech. So it’s tech, it’s looking to improve it, which of course many would say that’s a good thing to be able to do.

But if they improve the tech and they don’t get extra custom, of course that’s a business, that’s got problems. We also look at the regulation and the C are indeed investigating coin based. So again, that’s a distraction. It reduces morale. And of course, when we’re looking at a company, it needs strong leadership.

Armstrong needs to come out. If we’re looking for a stop to recover and it’s down, as I said, 64% this year, Coinbase, if we’re looking for it to recover, it needs strong leadership with optimism, talking about how he’s gonna change things and get recovery already. They’ve laid off 18% of staff.

It’s costing them, however, more money. And that’s in the price as well for share options. So they promised many of their staff share options. The share price has gone down. They’re having to give more options or more shares to their, in their people, their employees.

And again, it’s another cost of the company, the cost of sales or the cost that the amount of money they’re spending on advertising has reduced. So they’re spending their money on increasing operational costs, operating costs within the tech part of the company as well.

So operating costs, spending on tech, okay. Is increasing advertising is decreasing. Okay, how can they turn it around? Where they’ve got 6 billion in reserves? So we say 1.1 billion as a loss, they’ve got six quarters in effect. As long as the gloss rate, doesn’t increase to turn it around.

How do they turn it around? Well, first of all, they need to change their image.

They need to be given better customer services. In my personal opinion, they need to be making sure that the sec is dealt with in a professional manner, criticizing the E C doesn’t do them any favors.

So they need that investigation to be settled in an amicable manner. And don’t forget that could cost a lot of money settling with theirs. C may even cost them a billion dollars potentially. So again, you see, wow, that again could be a massive, massive cost.

They’ve gotta attract customers back in. If crypto goes back up in price, then of course, that is likely to have more people wanting to invest in crypto.

Good news is that we’ve seen crypto stabilize. And indeed we’re seen in the last few weeks, Bitcoin, Ethereum in particular increase in, in price. And again, potentially a run to the end of the year. They’ve gotta deal with BlackRock.

Is that a good thing or a bad thing? Well, it seems to be a good thing. Cause BlackRock, after all is the biggest investment manager in the world, 10 trillion. So actually having access to that would seem a good thing.

Okay. But don’t forget. You’ve got the original crypto investors. What are they like original crypto investors, other people that say we hate the banks. Okay. We wanna make sure that we got a system that’s decentralized. We wanna not have to pay bank charges.

We don’t want to be in an economy where the government can just print more money. Okay. So original people in crypto, the strong crypto people are antiestablishment to some extent joining up with BlackRock. Well, obviously it seems to be a good thing, but if you are one of the people that antiestablishment is the original and the main crypto core of people are then BlackRock is probably the worst thing that you can actually do.

Does it give potential? Yes. It gives potential for institutional sales, but don’t forget institutional sales, tiny margin. It’s not gonna turn this company around. Okay. So what are we saying? We need saying Armstrong needs to stand up. He needs to get a strong image out there. It’s probably the most important thing that needs to happen.

Crypto prices need to increase if you can get that right and actually get across strong leadership. And at the same time you get crypto prices increase and Coinbase become our call. It fashionable again, something that people want to use. Okay. Then you’ll see a company that could potentially at share price, rocket. It cause it’s down a lot.

They can return to profit. That stop price can go up enormously right now. I think the stop price is gonna go down over the next few days. We’ll see what happens, but no, one’s got a crystal ball.

There may be buying opportunities, but it’s definitely a company in trouble.

There’s your update? Short and concise. Hopefully that gives you the information you need. Please like the video. If you’ve gained something from it, I try and get out video every day

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